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Minnesota bans the AI tools that make fake nudes

Minnesota bans the AI tools that make fake nudes

Rule Changes

The first U.S. law targeting nudification technology at the source takes effect; a federal hearing August 19 will test xAI's challenge

August 1st, 2026: The ban takes effect

Overview

Updated Aug 2

In 2024, while six months pregnant, Minnesota's Molly Kelley found out a family friend had used a nudification website to make explicit images of her. He did the same to roughly 80 other women.

Her case produced the first U.S. law that bans the AI tools themselves, not just sharing fake images. It took effect August 1, 2026, with civil penalties up to $500,000 per violation. xAI sued to block it, lost the first round, and faces a full hearing August 19 on whether the law stands.

Why it matters

If Minnesota's law holds up in court, states can outlaw the AI tools that make fake nudes, not just punish the people who share them.

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Key Indicators

$500K
Civil penalty per violation
Maximum damages a victim can seek for each unlawful access, download, or use.
1st
State to ban the technology itself
Minnesota is the first state to bar services from offering nudification tools, not just from spreading images.
~80
Women targeted in the founding case
Molly Kelley and roughly 80 other women had images made by one man using a nudification site.
~7,000
Images from one childhood photo
A plaintiff added to the litigation says a relative used Grok to generate thousands of explicit images from a single photo.

Voices

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People Involved

Organizations Involved

Timeline

July 2024 August 2026

7 events Latest: August 1st, 2026 · 1 month ago
Tap a bar to jump to that date
  1. The ban takes effect

    Latest Rule Change

    Minnesota's nudification ban goes live. Victims can now sue anyone who creates or distributes such images for up to $500,000 per violation.

  2. Governor signs the ban into law

    Legislation

    Governor Tim Walz signs HF 1606, making Minnesota the first state to ban services from offering nudification tools.

  3. Bill clears both chambers

    Legislation

    The measure passes with near-unanimous, bipartisan votes: 132-1 in the House and 65-0 in the Senate.

  4. A victim discovers the images

    Origin

    In 2024, Molly Kelley learns a family friend used a nudification website to make explicit fakes of her and about 80 other women.

Scenarios

1

Court strikes down the ban on First Amendment grounds

Possible Resolves by Aug 1, 2027

Discussed by: xAI's legal filings; First Amendment scholars cited by NBC News and Fortune

xAI's suit goes forward and a federal court rules the law unconstitutional or blocks it for good. The judge who denied the temporary pause found xAI unlikely to win quickly, but the full case is still open. A win would turn on the strict-liability and no-safe-harbor arguments as much as on free speech.

2

Another state copies Minnesota's tool ban

Likely Resolves by Jul 1, 2027

Discussed by: RAINN; policy trackers at multistate.ai

Thirty states already restrict deepfake intimate images, but they target sharing, not the tools. If Minnesota's approach survives, advocates expect at least one more state to bar the technology at the source. Legislatures reconvene in early 2027, the likely window for copycat bills.

3

First $500,000 judgment lands under the law

Possible Resolves by End of 2027

Discussed by: Minnesota Lawyer; bill sponsors

The law's power is untested until a victim actually collects. A Minnesota court awarding damages under HF 1606 would show the civil remedy works and give other victims a path to follow. The pending litigation, including a plaintiff whose relative allegedly made thousands of images, is the most likely source.

4

xAI drops or settles its lawsuit

Uncertain Resolves by Aug 1, 2027

Discussed by: Court observers cited by Reuters and CNBC

After losing the first round, xAI could abandon the fight or cut a deal rather than risk a precedent that helps Minnesota. A voluntary dismissal or settlement would leave the law intact and signal that platforms will comply rather than litigate.

5

Judge suspends Minnesota's nudification ban at August 19 hearing

Possible Resolves by Aug 19, 2026

Discussed by: xAI's legal filings; court observers cited by The Next Web and MLex

At the August 19 preliminary injunction hearing, the court could grant xAI's request to pause enforcement while the full merits case proceeds. To succeed, xAI must persuade Judge Frank it has a real chance of winning on the First Amendment or strict-liability arguments and that it faces irreparable harm from each $500,000 exposure. Frank's TRO denial signals skepticism, but a preliminary injunction gets fuller briefing from both sides.

6

Parallel Grok class-action evidence undercuts xAI's 'good-faith platform' defense

Possible Resolves by Q2 2027

Discussed by: Lieff Cabraser Heimann & Bernstein (plaintiffs' firm in California case); Gadget Review

A California class action filed March 16, 2026, alleges xAI knowingly profited from Grok-generated child sexual abuse material while refusing industry-standard filters. If that case produces evidence of deliberate monetization of explicit deepfakes, it directly contradicts xAI's argument in the Minnesota case that it deserves safe-harbor protection as a compliant platform. The cases run in parallel courts but share the same factual core.

Historical Context

3 moments from history that rhyme with this story — and how they unfolded.

June 1997

Reno v. ACLU (1997)

Congress passed the Communications Decency Act in 1996 to criminalize sending indecent material to minors online. The Supreme Court struck down the core provisions in a unanimous ruling, finding them too broad and vague.

Then

The government lost its main tool for policing online indecency.

Now

Courts set a high bar for content-based limits on internet speech, a standard xAI now invokes.

Why this matters now

xAI's First Amendment claim leans on this line of cases. Minnesota argues its law targets a tool and conduct, not protected expression.

April 2018

FOSTA-SESTA (2018)

Congress amended Section 230 to strip legal immunity from websites that knowingly facilitate sex trafficking. Platforms faced new liability for user activity.

Then

Sites like Craigslist shut down personal ads to avoid exposure.

Now

Critics said the lack of clear safe harbors chilled lawful speech and pushed platforms to over-remove content.

Why this matters now

xAI makes the same complaint: no safe harbor means compliant operators face the same $500,000 exposure as bad actors.

May 2025

TAKE IT DOWN Act (2025)

President Trump signed a federal law criminalizing the non-consensual publication of intimate images, including deepfakes. It requires covered platforms to remove flagged images within 48 hours.

Then

Victims gained a federal takedown right, enforced by the Federal Trade Commission.

Now

The law targets distribution after the fact, leaving the creation tools untouched.

Why this matters now

Minnesota attacks the other end of the pipeline. The federal law removes images; Minnesota tries to stop them from being made.

Sources

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